The Vietnamese economy is facing three major challenges, including aslump in agricultural growth, the Minister of Planning and Investment,Bui Quang Vinh, said after a meeting with the Interministerial SteeringCommittee on June 25.
The Ministries of Finance; Planningand Investment; and Industry and Trade, as well as the State Bank ofVietnam came together to discuss the management and governance of theeconomy in the second quarter of 2015.
Last year, theagricultural sector accounted for 3.44 percent of the country’s GDP.However, during the first six months of this year, the sector only grewby 2.17 percent, he said.
The minister attributed this todroughts in the central region as well as struggling seafood exports,which significantly impacted on agricultural production and exports.
He also pointed out that trade deficits had resurfaced this year afterthree years of surplus. The deficit reached 4.7 percent during theJanuary-June period, close to the annual limit of 5 percent set by theNational Assembly.
A trade deficit exceeding 5 percentwould lead to an imbalance in foreign currency payment and a decline inVietnam ’s surplus of foreign currency holdings. This could even putpressure on exchange rates, which would affect the economy at large, theminister warned.
In order to solve the problem, he saidit was crucial to boost exports, especially agricultural products, whilestrictly controlling imports, particularly luxury goods, byestablishing a technical barrier.
Another challenge to the economy and domestic production is posed by smuggling and counterfeit goods, the minister continued.
He noted that FDI currently plays a large role in the manufacturing andprocessing industries that contribute significantly to nationaleconomic growth, GDP and exports. However, only the development of astrong domestic sector can boost Vietnam’s trademark and help thecountry’s economic independence, he said.
He suggestedcontinuing the implementation of Resolution 19 on improving the businessenvironment by establishing a competitive market and creatingfavourable conditions for investors as well as foreign workers inVietnam, while rolling out measures to put an end to smuggling in aneffort to support domestic production.
The minister alsorevealed that State budget collection in the first and second quarter ofthis year exceeded its target. He explained that although a drop inglobal fuel prices affected oil exports, it benefitted other sectors byreducing their input costs.-VNA
The Ministries of Finance; Planningand Investment; and Industry and Trade, as well as the State Bank ofVietnam came together to discuss the management and governance of theeconomy in the second quarter of 2015.
Last year, theagricultural sector accounted for 3.44 percent of the country’s GDP.However, during the first six months of this year, the sector only grewby 2.17 percent, he said.
The minister attributed this todroughts in the central region as well as struggling seafood exports,which significantly impacted on agricultural production and exports.
He also pointed out that trade deficits had resurfaced this year afterthree years of surplus. The deficit reached 4.7 percent during theJanuary-June period, close to the annual limit of 5 percent set by theNational Assembly.
A trade deficit exceeding 5 percentwould lead to an imbalance in foreign currency payment and a decline inVietnam ’s surplus of foreign currency holdings. This could even putpressure on exchange rates, which would affect the economy at large, theminister warned.
In order to solve the problem, he saidit was crucial to boost exports, especially agricultural products, whilestrictly controlling imports, particularly luxury goods, byestablishing a technical barrier.
Another challenge to the economy and domestic production is posed by smuggling and counterfeit goods, the minister continued.
He noted that FDI currently plays a large role in the manufacturing andprocessing industries that contribute significantly to nationaleconomic growth, GDP and exports. However, only the development of astrong domestic sector can boost Vietnam’s trademark and help thecountry’s economic independence, he said.
He suggestedcontinuing the implementation of Resolution 19 on improving the businessenvironment by establishing a competitive market and creatingfavourable conditions for investors as well as foreign workers inVietnam, while rolling out measures to put an end to smuggling in aneffort to support domestic production.
The minister alsorevealed that State budget collection in the first and second quarter ofthis year exceeded its target. He explained that although a drop inglobal fuel prices affected oil exports, it benefitted other sectors byreducing their input costs.-VNA
